DaVita is adding a $250 million "C" loan to back its $150 million acquisition of Physicians Dialysis. The loan hit the market last Tuesday at LIBOR plus 1 3/4%. The company already has a $1.03 billion "B" loan that is priced at LIBOR plus 2%.
Credit Suisse First Boston is leading the credit and Bank of America will have an agent role. DaVita, a dialysis center operator, has historically used both banks. "The quality of the individual people that we are working with from both institutions as well as their presence in healthcare makes them a good match for DaVita," noted LeAnne Zumwalt, DaVita's v.p. investor relations. She declined to name the bankers working on the credit. CSFB bankers did not return calls.
DaVita visited the market twice last year to reprice its "B" loan. Last June, the company cut pricing from LIBOR plus 2 3/4% to LIBOR plus 2 1/2% and in November the company returned to reduce the spread to LIBOR plus 2 1/4% with a step down to LIBOR plus 2% based on leverage performance (LMW, 1/26).